Midday Commentary: Positive tone to high-grade market to start week; PepsiCo notes move wider

By Aleesia Forni

Virginia Beach, Va., July 29 - The tone to Monday's investment-grade bond market was positive early during the session, one trader remarked, though he noted the recent deal from PepsiCo, Inc. traded slightly wider at mid-morning.

The Markit CDX North American Investment Grade index was 1 basis point wider at a spread of 76 bps early Monday.

PepsiCo's $850 million tranche of 2.25% notes, which priced during Thursday's session, traded 1 bp weaker compared to levels seen on Friday at another desk.

The trader quoted the notes at 84 bps bid, 80 bps offered.

PepsiCo priced the notes due 2019 with a spread of Treasuries plus 90 bps.

The $1.7 billion two-part sale also included $850 million of two-year floating-rate notes sold at par to yield Libor plus 20 bps.

PepsiCo is a Purchase, N.Y.-based global food and beverage company.

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